Emerging Market Funds Are Finding New Places to Put Their Money
Old wisdom says to buy when there’s blood in the streets — even if that’s in Seoul, Taipei, or Mumbai. Emerging market (EM) stocks plunged Thursday after AI bellwether Broadcom missed its revenue forecast, shaking confidence in the asset class that’s powered to record highs all year. The real story, though, was already unfolding before the print.
- The MSCI EM index posted its steepest drop in nearly three weeks — as analysts like Banco Ve Por Mas worried that the “significant [tech] rally … may have gone too far.”
- Even so, TSMC, SK Hynix, and Samsung were up as much as 253% this year — gains so large that mandates had already forced funds to sell.
Offshore BTFD: Despite the selloff, JPMorgan isn’t flinching. The bank remains bullish on emerging markets, arguing that AI-driven momentum is broadening into industrials and financials. That sentiment comes as fund managers have already been rotating from semiconductors into names like Baidu, CATL, and India’s ICICI Bank. For those willing to look past the Broadcom noise, the next leg of the EM trade may already be loading up... unless the Iran standoff upends it all.
